News: Linc looks to Alaska after raising $265M , page-5

re: News: Linc looks to Alaska after raising ... Dear Liba,


"130 mm goes to pay down well fargo for some reason . I am sure there is a good reason ( i hope there is a good reason)"


The good reason that Wells Fargo ( Paribas ) Needs to be repaid is that LNC USA is using the same security to secure a higher loan from the bond market.




This is the announcement of the original loan last year.

13 October 2011
LINC ENERGY COMPLETES PURCHASE OF ERG TEXAS &
GULF COAST OIL FIELDS


The new credit facility with BNP Paribas will further enhance and improve our flexibility in
the execution of our drilling and overall growth strategy in the Texas and Gulf Coast region.
The cost of capital at 3.1% means Linc Energy is better off borrowing on these operating oil
assets than using our own cash, allowing Linc Energy to keep its cash invested in Australia
earning around 6%. Linc Energy's treasury did a great job taking advantage of a strong
Australian dollar and getting our cash into this transaction at an average of over $1.03 - a
great effort in the face of what's been a very volatile period.”
“This is just the first step in Linc Energy's plan to build out aThis is just the first step in Linc Energy's plan to build out an oil production base of over
10,000 barrels per day in the Texas, Gulf Coast region, and it’s a good start,” Mr Bond said